Currently, there is a check hit our bank 12.31.18 (wages), and one check hit our bank on 01/02/19 (taxes) for the same period. Paychex didn't report 12.31.18 (wages) on Form 941. Per Paychex response "requirements report for check date 01/02/2019. The direct deposit net pay will always be deducted 1 business day before the check date and the tax liability will be deducted on the check date."
We are on cash basis Company Inc, and right now my number doesn't match with Paychex number for 2018 (they have less for one check). I am not sure what I can do here. Have Paychex to amend all returns created for 4th quarter and year end 2018 ,all this is something that I can do on my side not even sure what).
Hi there, VandP,
Let me help share information about how QuickBooks records your payroll transactions.
In QuickBooks, the tax and wage summary reporting depends on the check date of the paycheck of the employee regardless if when it was debited from your bank.
Even though the money for that check was debited from the bank on 12//31/2018, if the check was to be credited on 01/02/2019 its tax and wage reporting will be on the 1st quarter of 2019 already.
Same goes with the pay period, regardless of the pay period (from the prior year), if the check date falls on the current year, the tax and wage reporting will be this year.
If you want this paycheck to be reported on 2018, you may need to void the check and recreate it again.
Here's a great resource that you can check on for more detailed information: Payroll 101.
Please feel free to reach back out if there's anything else you need help with cocnerning Payroll, I'm always here to help.
Thank you for your post. So what should i report in my federal/state tax returns? Since we are on cash basis, I should record whatever was deposited/ taken from our bank or I am mistaken?
Thanks for coming back to the QuickBooks Community, VandP.
I'd be glad to provide some clarification about filing tax returns and recording payroll.
As mentioned by @ MirriamM, the tax and wage summary reporting depends on the check date of the employees’ paychecks. You'll only report the paychecks dated 2018 on your federal and state tax returns.
I want to be sure we get your taxes and forms handled correctly. I recommend contacting our Payroll Support Team. They can assist you with processing the payroll correction.
Once done, manually file your previous quarter’s tax return and send them to the appropriate agency. To get the previous quarter's data, you can run the Payroll Summary Report.
You can visit the IRS and state websites to download the form.
If there's anything else that I can help you with, simply mention my name. I'll get back to assist you further.
Thank you for your reply.
What date should I record in QBs- Check date (01/02/19) or Transaction date (12/31/18)?
These are two different tax year mentioned in one Paychex report, and I don't want to mismatch anything.
Thanks for getting back, VandP.
Allow me to join this conversion and provide addition insights about recording payroll.
If the transaction date was on 12/31/2018 and the check date was on 01/02/2019, it will be posted to on the first quarter of 2019. Since your company is on cash basis, it will record to when was the payment posted in the Bank Register.
I'll be around here in the Community, so please don't hesitate to reach out to me if you have any concerns.
Thank you so much Charies,
This was what I did, but now we have different wages amount with Paychex for 2018.
Since I have included plus one more check/transaction in 2018 (transaction date was on 12/31/2018), but Paychex process this amount in 2019 (since check date was on 01/02/2019).
I am still confused.
Hello there, @VandP.
I appreciate you coming back to us for additional support. Allow me to join this thread and clear this up for you.
Since you want the paycheck with the 2019 date to show on last year's report, you have the option to delete and recreate it. Just make sure that the check has the year 2018.
I also advise reaching out to your accountant who can tell you which process would be better for your specific books.
That's it. Let me know if you have other payroll questions for me. I'm always here to answer them all for you. Have a good one!
Thank you for your email, however I think you misunderstood my question.
Our payroll is handled by Paychex company. I received the form 941 for quarter 4 from them with doesn't include the last wages. They did not include the last check in the form. As they explained "The payroll entry for 12/31/2018 is being reported in 2019 due to the check date being 01/02/2019." Paychex took money (wages) from our bank account on 12/31/18 for the check date being 01/02/2019. So, they will add this check to the form 941 for quarter 1 of 2019, however I will need to record this amount in 2018 (we are ob cash basis). And I will need to report this as expense in our company's federal and state tax returns (I am not talking about payroll tax return!) As a result, I will have different amount with what was reported by Paychex company.
Or should I record this amount in our accounting program (for instance, quickbooks) on 01/02/2019 even if this amount was taken from our bank account on 12/31/18?
I'd suggest you record these amounts based on the actual dates.
On the other hand, on the reporting part, you can read the article about Constructive Receipt. However, it's best you can seek advice from an accountant for a better view about it.
Feel free to join us back here if you have other questions.